May 31, 2012:

BATAVIA, N.Y., -Providing an ejector system to expand capacity at an existing oil refinery Graham Corporation (nyse mkt:GHM), a global designer and manufacturer of critical equipment for the oil refining, petrochemical and power industries, including the supply of components and raw materials to nuclear energy facilities, today announced that it has been awarded $5.0 million in new orders. The orders awarded to Graham span two key markets within the Company's targeted energy industry: oil refining and nuclear energy. Graham's first win in the nuclear energy market in China is for ejector systems to be built in Graham's Batavia operation. The ejector systems will be installed at four Chinese nuclear energy facilities currently under construction. The second order is for an ejector system with liquid ring vacuum pumps that will be installed in an existing Chinese oil refinery to nearly double its capacity as demand for transportation fuels in China continues to grow. Both orders have planned delivery schedules within the current fiscal year, which ends March 31, 2013.

James R. Lines, Graham's President and Chief Executive Officer, commented, "We have successfully secured our third order within the past two months for oil refining capacity investments in China, marking what we believe is a continued high level of confidence in our brand. Of significance is our entrance into the nuclear energy industry in China, which is expected to expand significantly over the next ten years. The four nuclear energy reactors currently under construction in China are well advanced in their procurement cycle for critical equipment. I believe that these orders are a testament to our strategy in China to establish our capabilities, build awareness and develop customer relationships. We have earned a large share of incremental capacity added during the past six years in the Chinese oil refining market, and we are now successfully expanding into the petrochemical and nuclear industries.

"Both domestically and internationally in all of our markets, we continue to experience elevated bidding activity as the pipeline of opportunities expands. We finished fiscal 2012 with $42.3 million of orders in our fourth quarter, and it is encouraging to have this momentum carry into the first quarter of 2013."

ABOUT GRAHAM CORPORATION

With world-renowned engineering expertise in vacuum and heat transfer technology, Graham Corporation is a global designer, manufacturer and supplier of custom-engineered ejectors, pumps, condensers, vacuum systems and heat exchangers. For 75 years, Graham has built a reputation for top quality, reliable products and high-standards of customer service. Sold either as components or complete system solutions, the principal markets for Graham's equipment are energy, including oil and gas refining and nuclear and other power generation, chemical/petrochemical and other process industries. In addition, Graham's equipment can be found in diverse applications, such as metal refining, pulp and paper processing, shipbuilding, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning, and in nuclear power installations, both inside the reactor vessel and outside the containment vessel.

By Graham Corporation